On Mean Street, what becomes of MF Global after bankruptcy? Also, what worries are sparked by the current market rally? Plus, what Bob Dylan and The Beatles have to do with Steve Jobs.

This transcript has been automatically generated and may not be 100% accurate.

I ... that afternoon ... it's Monday October thirty first also known as hollowing ... and you're on means tree I'm Evan Newmark big story today ... tin card Anjin ... she Enami in May in a grand total of seventy two days and now she's getting a divorce ... the second big story today for those of you don't care like many American Financial ... Michael Spector MF Global heading for bankruptcy bankruptcy correspondent at the ... reporter capital and ... this is a danger and that this will have well this is this is this the blue ... certainly if you're one of MF Global's employees is not a good day at twenty eight hundred employees when employees are ... from Willmer this second were to update a decade or so they did they filed for bankruptcy that ... they have filed for bringing about evidence that the Fed cut him off right ... they were thrown off ... of one of these floors the baby the CME and easy ... I said he wanted positions you know with with a position Ryan's trial out ... disaster we actually a nice piece today about a guy you want it in your Mercantile Exchange ... the memo Bulls was going houses clearinghouse in a walk then said Maggie and it can do any work today right the boat to ferry was backed up ... took the ferry went back home ... to the still employed we're it appears over the euro is not such a bad day ... just take this through what happens from here there was supposedly a deal they were trying to work out deal fell through Olusegun Arsan with the detail that collapsed yesterday so ... I'll look like Interactive Brokers was gonna come and and buy ... all or parts of the company right there's a ... there's a futures business nine years of trading businesses into but that but the future does with the old ... car the core of the business before they decided to become this a big shout traders bet the farm on red euro sovereign debt credit six Dan and European sovereign debt that then everybody run for the Hells ... aam but it looked like they had a deal in principle yesterday going into the wee hours in the organ at this sort of complex transaction in which people are ... just the holding company ... into bankruptcy ... and then have a bankruptcy auction in ... an interactive was going to be what's called a stalking horse bidder ... looks like a big was going to be roughly a billion although that was fungible moving around a little bit ... and if one of the main reasons it was just a mini the holding company is in line to all the regulated entities ... out of court as now that those are going and going and you've got issues with the Securities Investor Protection Corps centric ... trying to trustee that take some of the control away from the people around the company ... say we when ... we met a messy messy does why as they thought they had a deal ... and then apparently there were some due diligence ... some concern in rendering to diligence and then there was no jail so the Mohs so um ... you know the reality is that ... as we've discovered right now and the Global was not too big to fail and so they are failing retain our ... buy during the ... you know I need lessons or take away some we had problems ... of a somewhat similar nature although ... that probably the right price ... I'm going to go Yellen ... it's funny mention that that's that's a good example episode of like a broader lesson ... that's a real art of the situations which is ... it's un clear to us when the company first brought on restructuring advisers first croutons Gassmann's bankruptcy counsel ... companies usually know they were raising of the week and try to get the salad on outside of bankruptcy ... there was an immediate sale in conjunction with the bankruptcy ... one lesson here is you know ... as bad if these things lead at the new hires bankruptcy lawyers but you know a little preparation can go a long way ... in a fifty two cents as it signed a ... deal done the event of a dead dog owners realize is that we've had a Fairmount experiences is certainly of the past few years ... is the lower the chicken and egg problem or a self fulfilling prophecy problem which is ... you know it is so much in the financial markets are built on the psyche of confidence threat and once you do when she ... showed year and are saying you know what ... we get some issues ... it then becomes soulful philology SA the headlines about ... the ban on European sovereign debt in batches made everybody nervous and yet people inside MF Global saying I ... know that was in sort of on a huge problem for us are still equity value with this business ... but again it certain that this ... lack of better term run on the banks of the phenomena get these really intense negative headlines people run for the ills and you find yourself uncertain the slap dash we can try it in an auction I was ... I just I did touch on one maybe someone to ... salacious detail here ... which is there's been a lot of the huge area idea to do something out of that I ever become silly ... but you know that this thing about is that twelve million dollar payout to John Poors I hear ... I don't know how the payout was structured he was only on a sale ... it is getting from bankruptcy ... but ... at the end of the day ... John core Zine ... may not cover herself in glory but this is gonna make it four ... at the end of the day he will still owe money made from Goldman said CLNE will have to wait to see how things will play out the documents are still hitting the bankruptcy court Dr right now ... and legal challenges and things sometimes ... when an executive get some kind of pain out and it's close to bankruptcy that can be clawed back ... but your point generally ... is a valid one which as I've covered plenty of bankruptcies in our ... big stain for the head honcho in the company doesn't bankruptcy but they usually do they do they know that they do OK not hurting terrible thank you very much Michael Spectris ... Wall Street Journal ... headwinds stocks are going back a little bit they're off ... upper center were more than a percent no big surprise but ... in others you The euro worries people to the weekend's only discovered the guest Why Italy still is a real fiscal problems ... are nothing new about that ... second condo ... those floods in Thailand you don't think they're affecting business while they are apparently on deserving of ... some problem production here in the U S and Canada ... because of supply chain Proms going back to Thailand in the flood there ... and finally of course we have the to make the major car dashing story ... which I'm sure you'll hear about Ethan's the rest of the day ... stock market we gotta break essentially come straight on Jr ... Michael Syntroleum Barron's is going to come join us ... talk about ISP's from this weekend's on about the market you are on your few weeks ago ... we talked about the narrow trading range ... he said ... odds were there were to break out of the range some time that you know into the earnings season correct prediction ... he did say were tried moving down the tinkering with with Asia and we went down first in the third Temple of and a desire to get ... their colleagues taking credit for that one can ... now you can use it is an interesting piece which ... I read it ... that doubt there's some ... he and what that says that the toddler with a good correlation yet you know this idea that ... it's like it's not a stockpickers market ... in fact ... attractive prizes the stockpickers the purple all of you as you know why people insist on calling is you know that things are picking stocks matters when Billy's educating your article showed he really does well certainly not recently it hasn't mattered and I think the reason that people do want to ... they wish for stock pickers market right for a lot of reasons ... this is all infrastructure out there that says you know ... all the regulatory by the on the tax on all the Wall Street building on the issues they get it you can actually do this to our stock by stock basis ... the reason is though given that the fast money the supposed SmartMoney hedge funds ... their business model is to own one thing and then against another one right Aereas joked that to you know they can tell you that ... you know ... chickens are overvalued relative to go straight or to buy goats to Celtic is enough to play with the livestock in general are a buy or sell ... out that today do what's happened now all I think he's been out in extreme were actually a level of correlation which means ... all stocks moving together either up or down on the markets up or down ... on that looks like crash type situation soared nineteen eighty seven just get me out even earlier not ... we haven't been in a crash in fact we've been in the rally recently ... and are really just I think shows the outsize influence of macro forces it's not about in bad to worse but also using DRQ the GOP's though ... that though the outsized role ... not just of the HFT trade yet but of that the ETX in the leveraged ETF ... you know there's there's no there are whole sections and traders out there ... that kind of are just playing the directional flows are a given day ... and and because of the leverage is built into the system ... you know in the margins ... and a new bike scoop from ... Leverage AsiaNet of a base the gambling wiping them the mechanics of either sex is that ... there's not a lot of organic ... retail money flowing into the market daily basis even in mutual funds in very low cash levels they're not the mark of buy or sell ... it to be in the field to those ETF driven players ... who ... and what an ETF managers get painted to ... match the Plough track it's an index match the close of markets adopted by what you need to do to match because I've been told that high frequency folks ... they almost week until ... the oil market the floor trading ... oil market closes ... and aims to thirty ... and again our half detritus they have to step ahead of the index funds have to read out so that's the game ... if the cake the one forever ... but that's what it is very you know because I am ... as ALM wanted us to tonight I watched ... the tape it down will that whenever we call the electronic version that nowadays ... and ... you know you can really do ... you keep the Cunniff look up calling going into that last hour of trade ... you can sell all will end up yet but you know you know you what you see all the time you know that the cake and ... you know the market and take the big up day he was last Thursday ... you know the market was up really really strong Dow was up like a belt come to strong ... and then you know when you watch and this is going to come in and around the question of where the company knows the question of how much it'll cost you than you could say was really Questor Lee algorithmically generated ... turn on and that just flows through the rest of the market ... is it your take that there has to be some kind of dropping archivist has continued for long-term iRobot of dropping I actually do think if I'm if the macro calms down if we get some general agreement that ... you know we're not serve fighting fires every other weekend ... out with some of the crisis or another they get you can get to that point in fact ... you know early this year was a very gently trending market ... I he did not have correlations up through the roof he actually had some winners and losers ... on a relative basis so Yeh can happen ... although I'm sort of on board with the idea that were maybe at a higher plateau ... of correlation to the embargo it's not just stock by stock correlation ... the SNP looks like we're going ... to do it didn't chart in the struggle for Imax different things to be inverse ... I've depending on what part of their economic cycle you were a year or so into risk assets are all one thing I've been Treasurys in the dollar bought and holders of it is very bizarre and interesting Lee I actually you know through the summer I thought ... you know if you hurry ... if you like a vintage or want ... to be ... well disposed to large cap U S stock ... the last few months have been a great ... opportunity by enough for me to really question you type respectable and the problem is that the market operates many people read Barron's is sure to follow which you have to say ... they really geared towards what can happen in the next twenty four contact Energy and this ... and it's just a crazy when operate I can you believe people the trading more thing they can make money ... now it's completely I always joke that it's it's almost like ... everyday isn't again ... you know shes like a sport season ... except you start the game of the two men are not ... you know it's just there's no way we can do is ball control and be patient with him to come back as November like it you up or down on I think November as a whole is not is up we have the committal buffers ... Yemeni Halloween plans ... I'm going to be ... taken to forty rolls around ... there is ... it's been a bit rate this November according to Mike Santo Leigh but will have to wait and see ... coming up next ... Francesco GoAir as a more wonderful insights on the wonderful world of Wall Street ... auf ... on this hollowing Francesca Hererra of the Money Investing section your the Wall Street Journal ... is get to ... read Alice with some ... tricks or treats outrageously her to get a piece coming out tomorrow ... is said to me it's about Mike Mayo the well-known ... get a catalyst ... he's not happy with Wall Street even though he's made the lots of money off the street he not have that with Wall Street is an interesting one is is you know we have books read about was to give people what the judge he's like me so ... I mean I was talking about ... war ... I didn't have people ... inside this are taught by people out of the game no one to dish out and ... I'm Settles of course now I might be use that to bed to run on the CBD around like twenty s mostly covering banks ... use the lead the gainers towards the CEOs say he's written a book which are coming out of time of the next few weeks in which he ... thinks the whole country Wall Street investor is a guy like ... you know I might get issues TSE's the he's he's got problems with the structure of the industry with some of the people in the industry so ... he's got a lot of complaints that hasn't stopped him ... from from hopscotch in from the hot over many years collecting these ... these paintings from the law to differ but says ... it's not that that's not in and if that's true I think he would say that to the downside in a place we can do independent research ... was for three straight years he couldn't really and he's famously says that the reason he mean ... that that there is pressure ... from management for him as a catalyst to say things about companies' stocks with a market that he doesn't ... feel are correct credits Opel pressured direct or indirect to survive a ... two thousand and three at this pizza ... was that the banks of the one point four billion dollars ... to settle charges that they be just that that they use the road overly rosy research to wean deal Simon side ... that will support the band that I know that buying doses a day we've we've built Chinese wall ceiling between our research at Tabb ... Arts and even some body parts ... in cars made me lose that actually partition is saying ... this thing is still going on right directly or indirectly still not really well there is a fundamental problem and I believe the touch of that which is ... how she knew how does have is a firmer as large Wall Street pay for its research ... commissions are fundamentally not exist the trial ... right so so so and most ... hedge funds or have their own ... team of research and as they did so this are the choices why ... not hire people that's that's a big question with respect to the gym even eating reading the wide you need if you're a good investment bank CoreLogic Bank ... any doesn't pay for itself you shouldn't have and then it is up to be invested to quell the lodge guys will set of Don't in house or such funds the little guys was too high and independent boutiques I know it the problem is that nobody is ... putting money to do that so far did you ask the U S might know why he never went to go work ... for ... the sell side ... I mean I read it for that for the buy side in the piece is right he says that ... you know is the problem research if you're sitting investment why hasn't he got off to the summit on what to do he did for the work for financial security a slight bit when they would they were trying to have more in house such a thing going so well ... for potential Anita had to close it down ... on its trimmings and the other the other was that the one ago that because it's not that much better job security in more street right so and that's it that's the human condition I guess but ... that's that's that's a big issue ... the it was a tonic surveys that you know it yet so what is nine years from the yet to doesn't resign is on an as sovereign stops in everything else ... we'll still be plenty of still writing columns about this stuff what to do that because of the the the issue I think you should know is that there's no underlying economic model to support ... and so then goes it ... will be the issues the research ... if you wanna do secondary offerings you wanna do IPO's ... there is still up in the ... for ... investors to kick off the week the view of an adult thing that ... that is still the case on Wall Street and I don't see how you ever get rid of the day with its gravity on the other hand you know these pews that yelling especially those cases he has a few demos that which we ate the pinnacle with the daily seated position where it you know ... there's a lot of pressure meant to be a ... to put a rosy view on some these companies is the banks Teva ... buys him and it's it's a very ... difficult situation identical situation ... the reinvests is good investors know about and that's why they had done in house research isn't any of the that the final question few projects that were ... we say happy Halloween Indicator ... do they celebrate such a holiday ... back home in ... Italy we don't have happy Halloween we don't have Halloween ... we'll use pumpkin smooth out Dolly is probably a mess of the dot Ebit dot yet not the non hollowing non ... United lead candy outside the The Rare of apartments or ... are you just you going to be totally anonymous going to do that I'm in a the entire I've been you know I mean that that in the U S culture something that to ... anybody going to get your so we're not looking ... to get that ago Silvio Berlusconi the target of ... much that ... it is that the river thank you ... for ... coming out next ... Steve Jobs and the Beatles Jon Friedman will be and tells all about ... Jean Isenberg once CEO of Nabors Industries ... has been kicked upstairs to Chairman ... and for that very simple act you getting on a million bucks ... the shareholder capitalism work and ... David Weidner of MarketWatch in the Wall Street Journal is here to ... take issue with Mr Isenberg payout ... you get issues eleven ... it ... didn't you get inside and I think a Isenberg is looking like a pumpkin today by the windows he didn't actually carve that they will give you new sharpens ride the tide by the way to get ... there on the DeNA ... the remote Actives at this low tech but we took the view that look better on screen with that you know ... that now that apparently ... you know so she ... isn't burdened hundred million reasons to smile he's getting a hundred million ... from million George Finnair ... she had to ... sell ... neighbors so you're just under million copies in all these the elderly gentleman I read it as EGY and ... he's kicked upstairs ... with neighbors and basically built the stock rate ... he's built this company ... check out the Bordeaux ... doesn't look like a Superintendent Warren could affect their life or five people on the board ... I mean it was one shouldn't though this be a situation of caviar and tore ... everybody knows no Nabors Industries ... Jean Isenberg baby ... you know apparently they actually reduce the amount that you can get on the scribble circling the Mohs like two hundred million dollars a couple years ago right so you know you won't want to leave her sure ... here's the problem right ... who wants neighbors well ... a bunch of mutual funds and funds you know where you get something in the mail and have no idea what it ... means for without the good news for cycling with Europe in part because ... you know we can ... work if the ... you know how to actually get a boat neighbors to say ... due to compensation models out of control right and the mutual funds ... that Fidelity's ... Putnam's the ... normal muni men ... they are absolutely passive in this is really the sad state of American shareholder activism right now ... you know the reality is that ... we could make a difference ... if the people who are representing us in these phones are actually spoken to get something about right ... well this is an interesting service is because I just feel of checking on the history of the company basic he has built this company built alongside the inhabitants of the board while it does on the board yet he built the Jean Isenberg School of Management Universum as his dam Erste ... and the ex chancellor ... of University of Massachusetts Amherst is on his board he's one of the board members ... of the other that then I ... get there ... based in there ... as well especially because this is his first ... day for you ... why is that it's because you know that that the colonies and to vote against the SkyMiles on the third interim told the interesting thing is I think ... I think the lesson of might take with bringing this thing is ... there's a very hard thing to legislate against Diniz and many issues is your honor may have with this kind of payout ... I did that they use the shareholders company ... where shareholder nominate board directors the board of directors of OK this came to Fiji time for ... the ... the ... issue really does come down to the institutions ... and you know the reality is that the company of neighbours sizes a five billion dollar market cap to small to mid cap company ... is below the radar screen right you know if this is happening at a larger company you know like IBM or somebody like that when they think something is really not ... old enough for them and make the big staying races in their recent ... high in the key new ... three in the news sort of the ... power of the consortium were ... a bunch of institutions get together so they don't have all share the cost ... and effort of actually confirming some of the sports Ogden we saw Ken Lewis Austad took a lot of the dollar now by law to differ Jill still a lot of work ... even but but generally I think you tend to see these kinds of excesses ... if you will in the smaller to be testing the homebuilder's of course where pride most egregious example of this where for many years you know why they can pay themselves they're very generously but the truth of it is that ... if you're one or two billion dollar company Fidelity is not spend all the time and energy going after the board of that kind of small company or the probably well absolutely and you know ... but it but it just makes the situation even worse did you talk about a five billion dollar company ... with seventy four million dollars in profits in the latest quarter ... besides the euro the ... euro is pretty pretty outrageous ... for during his final question for you David Weidner do you think ... the thing most of these the more egregious things ... getting word that Al and Hiroyuki the Disney lots more this week ... it's it's always been the case in which will be ... the month of the one that I'm not so sure why ... I'm that's a mean I still I think the odds and is happy with that being ... the large caps now had a great lead in the room where they were few years ago ... when called springs eternal David Weidner ... coming up next ... RightNow's is ... one of Steve Jobs and the Beatles and Bob Dylan have in common ... well ... they're ... the kinds of things the runner-up Jon Friedman story ... Jon Friedman ... okay given to us you wrote a piece ... in Joe's book is about to reveal differences and thirteen Biller approximately is pretty ITA and Anna Telestone and Dylan is your kind of ... so he took his idea about innovation for the idea that that ... that the Beatles and Bob Dole were always reinventing themselves cracked Steve Jobs a classic sixties kid he loved the Beatles idealised Bob Dylan ... An analysis this is for those lyrics and said ... this is my life ... of Gensler the issue the hard question and on the big Bob don't stand so are you ... his reinvention always such a good thing having there is some years and there ... were bought dollars reinvent himself ... IMO yet I mean there is some ... you know ... maybe should've stayed as as as was the mother not talking about ... the stuff into the nearly seven of Dungan of Scotland's two decade old is a billion dollars is always a good idea in deals for space note the with ... twenty four seven news cycles ... of the day with fresh all the time my kids are dashing ... Chazen back to the guy cheese and veggies costly as your seat is probably on guy he's got to reinvent the is the best ways to reinvent itself into a into a new husband sometimes and I think ... go back to the jobs you think he really ... took users is that they can to stop the did you or I get messages from things ... you know from the music we listen to him despite abide by the Beatles deal especially Dylan inspired by the fact that this man spoke his mind ... he was he didn't get all the bad ideas that I there's a lot of truth to the Fed may get to the cheese Bob Dylan of many things but sort of um you know I ... wanted to make people happy ... write to the end of the ... jobs that mean Jobs learned from Dylan says it will ... face of it it can be a public figure for a long time ... for the French always be new would be different with them and cutting edge ... the Steve Jobs above double a let's talk briefly about the roles of John Lennon didn't receive more of a John Lennon Darrell called Ackman and all the Auletta Noire the question is does the book ... yes yes yes what it what he like getting the job one ... it was a good thing but there was a maverick he always tried to ... weave in and still something different something new something important that you like the lyrics and Jobs was in special kind of Ikeda poet at heart ascendancy in ... the key for the Delen in and billable spoke to and from a Swiss court heard ... and yet the BEA has been narrowing of the long Iraq ... yet I mean they did that in the scheme of things that they did decades ... the use of the ... vision of Indicator ... creditors should they get in the sixties ... the answer was Newmark by let me tell you I've got ... the ViKi and Castlight have one-year like white light water Bob Dylan's early years I think that he was released in the below ... picture to go ... Jon Friedman MarketWatch thank you very very much ... finally ... finally my comments are the dates on John Poors I and the collapse of MF Global ... earlier this morning I was here to Wall Street Journal's walking around stock in so many ... and so one cannot demand he said to me ... did you know John Poors and we owe Goldman Sachs is it is matter fact they didn't know John Poors I ... Anni said ... well um ... which non core Zine ... smart or is it just isn't easy a smart guy ... and I said to cause it said that the natural question but it's an irrelevant question when it comes to trading ... specially trading in the markets and that's exactly what John Corazon going with MF global ... smart ... or not smart does not matter ... the only thing that matters is when you are right ... for you are wrong ... and in this case and on downwardly John Corazon was wrong ... with that the leveraged positions he took an euro sovereign debt when MF Global's balance sheet ... well ... some did my Sitwell usually wrong on long-term ill be right but it doesn't really matter when you're ... writing on the company's balance sheet he was wrong ... I was not surprised by this just because someone was once a senior executive Goldman Sachs is not approve of their genius or are there in fallibility ... just what did John Thain struggles of Merrill Lynch are Peter Kraus is an AllianceBernstein's ... success at Goldman Sachs has been no guarantee of success at any other institution or in your role as CEO ... the past few decades ... Goldman Sachs prospered for lots of reasons ... sure the people who work there were hard-working and bright ... will we be that much more hardworking are that much brighter than anybody else on Wall Street ... absolutely not ... the biggest reason that they prospered in Goldman Sachs prospered was because of Goldman's client service culture ... and I think it's safe to say ... that Goldman's culture has been in decline for many years ... Sternli Ever since Google went public ... back in nineteen ninety nine ... and on Tuesday when ... MF Global has gone bankrupt ... to nice reminder ... that the partner ... most responsible ... for making goal to go public and Frontier new partnership ... was none other than ... Jon CoreSite ... who is now sealed his own fate with MF Global ... I'm Evan Newmark ... here on means tree ... happy Halloween ... coming up before ... Simon Constable ... have a great afternoon ... and a full fun day of trick or treating ...